Private International Law in Israel

B 363723

Table of Contents

The Author 5

List of Abbreviations and Hebrew Sources 25

General Introduction , 29

§1. HISTORICAL DEVELOPMENT 29

§2. NATURE AND SCOPE 30

Selected Bibliography - Authoritative Works 31

Part I. General Principles (Choice-of-Law Technique) 41

Chapter 1. Sources of PIL 41

§1. NATIONAL LAW 41I. Legislation 41

II. Case Law 41III. Legal Principles and Maxims 42IV. Literature 43

§2. INTERNATIONAL LAW 44I. Multi- and Bilateral Treaties 44

A. Multilateral Treaties 441. Civil Procedure and Legal Assistance 442. Status " 453. Family Law 454. Succession Law 455. Intellectual Property Law 456. Law of Obligations 457. Arbitration 45

B. Bilateral Treaties 451. The Palestinian Authority 452. Recognition and Enforcement of Judgments 46

II. International Customary Law 46

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Chapter 2. Principles of Establishing the Applicable Law 47

§1. TYPES OF CHOICE-OF-LAW RULES 47I. Hard-and-Fast Rules versus Weighing and Balancing Contacts 47

II. Exception Clauses - 47III. Multilateral versus Unilateral Conflict Rules 47

§2. CONNECTING FACTORS 48

I. General Policy of Law Selection 48II. Exception Clause . 48

III. The Personal Connecting Factor: Domicile/Habitual Residenceversus Nationality or Religious Affiliation 50

IV. Statutory Designation of the Governing Law versus PartyAutonomy 52

V. Unity of Property 52§3. TIME FACTORS 53

I. Conflit mobile 53II. Vested Rights 55

III. Changes in the lex causae 56§4. DEPECAGE 56

I. Formalities 56II. Capacity 57

III. Choice of Applicable Law (Party Autonomy) 57IV. Trilateral Relations: Consensual Agency/Power of Attorney 57V. Prescription 57

Chapter 3. Basic Terms 58

§1. CHARACTERIZATION (CLASSIFICATION OR QUALIFICATION) 58§2. PRELIMINARY QUESTION 59§3. SUBSTANCE AND PROCEDURE 60§4. RENVOI 61§5. BLOCK REFERENCE 63§6. ORDRE PUBLIC (PUBLIC POLICY) 65§7. FOREIGN PUBLIC LAW 68§8. LAW OF THIRD COUNTRIES 70§9. EVASION OF THE LAW (FRAUDE A LA LOI) ~" 72

§10. REFERENCE TO THE LAW OF STATES WITH MULTIPLE LEGALORDERS 73

Part II. Rules of Choice of Law 75

Chapter 1. Persons 75

§1. NATURAL PERSONS 75

I. Legal Capacity 75II. Name 76

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III. Nationality 77IV. Missing Persons 77V. Change of Gender (Transsexuality) 78

§2. LEGAL PERSONS 79

Chapter 2. Obligations 80

§1. LAW OF CONTRACT 80I. Autonomy of the Parties 80

A. The General Rule: Prevalence of Party Autonomy 80B. Choice of Non-State Law 80C. Exceptions to Party Autonomy 81

II. Applicable Law in the Absence of Choice 82A. The Law of the Closest Connection 82B. Exceptions to the General Rule 86

III. Scope of the Applicable Law 86IV. Material Validity 87V. Formal Validity 87

VI. Voluntary Assignment of Contractual and Non-ContractualClaims 88

VII. Subrogation 90VUI. Multiple Debtors 90

IX. Set-Off 90X. Exclusion of renvoi 90

§2. PARTICULAR CONTRACTS 91I. Contracts for the International Sale of Goods 91

II. Contracts for the Carriage of Persons or Goods 91III. Consumer Contracts 92IV. Individual Employment Contracts 93V. Contracts for the Transfer or Licensing of IP Rights 97

VI. Agency Contracts 98VII. Negotiable Instruments (Bills of Exchange and Cheques) 101

VIII. Letters of Credit 103§3. NON-CONTRACTUAL OBLIGATIONS 104

I. Law of Torts 104A. The Development of the Israeli PIL Conflicts Rules 104B. Freedom of Choice 108C. The General Rule Failing a Choice-of-Law: The lex loci

damni 108D. Exception Clause 109E. Traffic Accidents 110F. Non-contractual Product Liability 111G. Violation of Privacy and Rights Relating to Personality 111H. Unfair Commercial Practices 112I. Restraint of Competition 113J. Infringements of Industrial and Intellectual Property

Rights 113

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K. Environmental Damage 114L. Nuisance 114M. Scope of the Applicable Law 114N. Rules of Safety and Conduct 115O. Direct Action against the Insurer of the Person Liable 115P. Legal Subrogation 115Q. Voluntary Assignment 116R. Multiple Debtors 116S. Exclusion of renvoi 116

II. Negotiorum gestio 116A. The Applicable Law: The General Rules 117B. Exception Clause 117C. Choice of Law 117

III. Unjustified Enrichment 117A. The Applicable Law: the General Rules 118B. Exception Clause 119C. Choice of Law 119

Chapter 3. Law of Property 120

§1. GENERAL RULES 120

I. Lex rei sitae 120II. Movables, Immovables 121

III. Transfer of Property 121A. The Interface between the lex contractus and the lex

rei sitae 121B. Capacity to Convey 122C. Formal Validity 122D. Retention of Title 122E. Property Rights not yet Perfected under the Former lex

rei sitae 122IV. Renvoi 123V. Exception Clause 123

§2. SPECIAL RULES 124I. Goods in Transit \ 124

II. Means of Transportation 125III. Owner-Tenant/Timesharing Relationship 125IV. Cultural Property 126

A. Protection of National Cultural Property 126B. Special Rules Concerning Certain Loans of Cultural

Property 127V. Trust Property 128

VI. Shares in Companies 130VII. Other Goods Subject to Export/Import Controls 130

VIII. Negotiable Instruments/Securities Transferred by Delivery 130IX. Expropriation 131

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Chapter 4. Intangible Property Rights 132

§1. INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS IN ISRAELI PDL:OVERVIEW 132

I. Copyright 133II. Patents and New Varieties of Plants 133

III. Trademarks 133IV. Industrial Designs 134V. Appellations of Origin (Geographical Indications) 134

VI. Undisclosed Information/Trade Secrets 134§2. COPYRIGHT AND RELATED RIGHTS 134

I. The Creation and Protection of Rights 134II. The General Rule of the lex loci protectionis 137

III. Exceptions to the General Rule 139A. The Law of the State of Origin 139B. The Law of the State of Nationality or Habitual Residence

of the Author 139C. Effects of Reciprocity 139

IV. Ownership of Copyright in Works Created by Employees 140V. Agreements concerning Transfer of Copyright or Rights of

Exploitation 140VI. Infringement of Copyright 140

§3. PATENTS 141I. The Creation and Protection of Rights 141

II. The General Rule of the lex loci protectionis 142III. Employee's Inventions 143IV. Patent Assignments and Licensing of Patent Rights 143V. Patent Infringement . 143

§4. TRADEMARKS 144

I. The Creation and Protection of Rights 144II. The General Rule of the lex loci protectionis 145

III. Trademark Assignments and Licensing 145IV. Trademark Infringement 145

§5. UNDISCLOSED INFORMATION/TRADE SECRETS 145§6. GOODWILL 146§7. RIGHTS OF PERSONALITY 147

Chapter 5. Company Law 148

§1. SCOPE OF APPLICATION 148§2. APPLICABLE LAW 148

§3. SCOPE OF THE LAW APPLICABLE TO A COMPANY 148I. The Legal Nature, Legal Capacity and Capacity to Act 149

II. Formation, Reorganization and Dissolution 149III. Company Name or Trade Name 149IV. The Company's Organization 150

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V. Representative Powers of the Company Organs 151VI. Membership 151

VII. Liability for the Company's Obligations 151VIII. Liability for Breach of Duties under Company Law 152

IX. Accounts, Auditing and Disclosure 152§4. FORMAL VALIDITY 153§5. LIMITATIONS OF AUTHORITY 153§6. CLAIMS ARISING OUT OF PUBLIC ISSUES OF EQUITY OR DEBT

SECURITIES 153§7. CROSS-BORDER REORGANIZATION 153§8.N CHANGE OF THE APPLICABLE LAW 154

§9. RENVOI 155§10. FOREIGN COMPANIES MAINTAINING A PLACE OF BUSINESS

IN ISRAEL 155§11. CORPORATE GROUPS (CONCERNS) 156§12. INSOLVENCY 156

I. Overview 156II. Primary Proceedings in Israel 157

A. Overview: Principles of Universality and ofNon-Discrimination 157

B. Applicable Law: The General Rule of the lexfori concurs us and Exceptions 158

III. Ancillary, or Concurrent, Insolvency Proceedings in Israel 162

Chapter 6. Family Law 165

§1. INTRODUCTION 165§2. THE LEGAL SOURCES OF ISRAELI FAMILY LAW - HISTORICAL

SURVEY 167I. Personal Matters under Ottoman Rule 167

II. Personal Matters during the British Mandate 168III. Personal Matters under Israeli Law 171

§3. THE PERSONAL CONNECTING FACTORS IN FAMILY LAW MATTERS 173

I. Nationality 173II. Domicile 174

III. Religion 174A. Religion as a Personal Connecting Factor 174B. Religious Affiliation/No Religion/Dual Religious Affiliation 174C. Change of Religion 175

§4. MARRIAGE/ESTABLISHMENT OF FAMILY UNIONS 177

I. Engagement/Promise of Matrimony 177A. Jurisdiction 177B. Applicable Law 178

II. Celebration of Marriage in Israel 179III. Recognition of Marriage Celebrated Abroad 180

A. Marriage Celebrated Abroad between Spouses notDomiciled in Israel at the Time of their Marriage 180

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B. Marriage Celebrated Abroad between Spouses Domiciledin Israel at the Time of their Marriage 181

IV. Registered Partnerships 183V. Reputed Spouses (Extra-Marital Cohabitation) 183

A. Reputed Spouses Domiciled in Israel 183B. Foreign Reputed Spouses or Analogous Family Unions 185

§5. PERSONAL EFFECTS OF MARRIAGE 185

I. Subject Matters Covered 185II. Jurisdiction 186

III. Applicable Law 186§6. MAINTENANCE OBLIGATIONS BETWEEN SPOUSES 187

I. Overview 187II. Jurisdiction 188

A. Jurisdiction with Respect to Israeli Citizens Domiciledin Israel 1881. Jurisdiction with Respect to Jews 1882. Jurisdiction with Respect to Muslims 1893. Jurisdiction with Respect to Druze 1904. Jurisdiction with Respect to Christians Belonging to a

Recognized Religious Community 1905. Jurisdiction with Respect to Persons Belonging to

an Unrecognized Religious Community or Having noPersonal Law 190

6. Jurisdiction with Respect to Mixed (Inter-faith)Marriages 191

7. Jurisdiction with Respect to Persons Affiliated withMore than One Religion 191

8. Jurisdiction with Respect to Converts 191a. Change of community under Religious Community

(change) Ordinance . 191b. Other Conversions 192

B. Jurisdiction with Respect to Foreigners and StatelessPersons Domiciled in Israel 193

C. Jurisdiction with Respect to Reputed Spouses 193D. Jurisdiction with Respect to Spouses Who Had a Civil

Marriage Abroad 194E. Jurisdiction with Respect to Persons Domiciled Abroad 194

III. Applicable Law 195A. The General Rule: Law of the Place of Domicile 195B. The Inter-Personal Rules for Persons Domiciled in Israel 196

1. The Basic Rules 1962. The Law Applicable to Spouses Having a Personal Law 1963. The Law Applicable to Persons not Having a Personal

Law 2004. The Law Applicable to Reputed Spouses 2005. The Law Applicable to Same-Sex Spouses Married

Abroad 200

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§7. FAMILY UNIONS PROPERTY RELATIONS 201I. Overview 201

II. Jurisdiction 204A. International Jurisdiction - 204B. Inter-Personal Jurisdiction 204

III. Applicable Law 206A. Opposite-Sex Family Unions Established by Marriage 206

1. The General Rule 206a. Renvoi 209b. Immovable property situated in a foreign state 209c. The default rule in case of no common domicile 210d. Choice of law 210

2. The Law Applied by the Religious Courts 211B. Same-Sex Family Unions Established by Civil Marriage

Abroad 211C. Reputed Spouses (Opposite-Sex or Same-Sex) 211D. Registered Partnerships Established Abroad 212

§8. DIVORCE 212

I. Overview 212II. Divorce of Jewish Spouses 213

A. The Special Features of Jewish Divorce 213B. Jurisdiction: The Rules 214C. Jurisdiction: Comments on the Rules 215

1. Jurisdiction in the Case of Jews in Israel, Domiciled in,or Citizens of, Israel 215

2. Jurisdiction to Dissolve Civil Marriages CelebratedAbroad 216

3. The Scope of International Jurisdiction of theRabbinical Courts 218

III. Divorce of Muslim Spouses 220IV. Divorce of Christian Spouses Belonging to the Same

Recognized Religious Community 221A. Both Spouses are Israeli Citizens 221B. One of the Spouses, or Both, are Foreign Citizens 221

1. Jurisdiction 2212. Applicable Law 223

V. Divorce of Druze Spouses 224VI. Dissolution of Marriage: Spouses Affiliated with an

Unrecognized Religious Community, with None, or withTwo Different Religious Communities 225

VII. Divorce of Karaite Spouses: A Special Case 226VIII. Recognition of Divorce Proceedings in a Foreign Country 227

§9. DETERMINATION OF PARENTHOOD 227I. Overview 227

II. Jurisdiction 228A. The International Aspect 228B. The Inter-Personal Aspect 229

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III. Applicable Law 231A. The International Aspect 231B. The Effect of Religious Law 232

1. Jewish Law 2332. Islamic Law 2343. Christian Religious Communities 234

§10. CHILD ADOPTION 234

I. International Legal Sources 234II. Jurisdiction 234

A. The International Aspect 234B. The Inter-Personal Aspect 235

III. Applicable Law 236A. The International Aspect 236B. The Inter-Personal Aspect 237

IV. Recognition of Foreign Adoptions 237§11. CHILD MAINTENANCE 240

I. Jurisdiction 240A. Jurisdiction with Respect to Israeli Parents Domiciled in

Israel 2401. Jurisdiction with Respect to a Child Born to a Jewish

Father and Mother 2402. Jurisdiction with Respect to Children Born to Israeli

Parents who are Both Muslims, Christians of RecognizedReligious Communities, or Druze 241

3. Jurisdiction with Respect to Israeli Parents Who Had anInter-faith Marriage, or are Affiliated with UnrecognizedReligious Communities, or with None 241

4. Jurisdiction with Respect to Foreigners and StatelessParents Domiciled in Israel 241

B. Jurisdiction with Respect to Parents Domiciled in aForeign Country 242

II. Applicable Law 243A. The General Rule: Law of the Place of Domicile 243B. The Inter-Personal Rules Applying to Children Domiciled

in Israel 2431. The Basic Rules 2442. The Law Applicable to Parents Having a Personal Law 244

§12. CUSTODY OF MINORS 246

I. Jurisdiction 246A. The International Aspect 246B. The Inter-Personal Aspect 247

II. Applicable Law 248A. The International Aspect 248B. The Inter-Personal Aspect concerning Minors Domiciled

in Israel 249§13. GUARDIANSHIP/PARENTAL AUTHORITY 250

I. Overview 250

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II. Jurisdiction 251A. The International Aspect 251B. The Inter-Personal Aspect 251

III. Applicable Law 251§14. CHILD ABDUCTION 251

I. Overview 251II. Application of the Convention by the Israeli Courts 252

Chapter 7. Succession Law 254

§1. OVERVIEW 254§2. JURISDICTION 255§3. APPLICABLE LAW 257

I. Lex successionis 257A. The General Rule 257

1. The Law of State B Refers to Israeli Substantive Law 2582. The Law of State B Refers to the 'Entire' Israeli Law 258

B. An Exception to the General Rule 259C. Limits to the Application of a Foreign Law 261

II. Choice of the lex successionis 262III. Formal Validity of a Will 263IV. Capacity to Make a Will 264V. Interpretation of a Will 265

§4. RECOGNITION OF A FOREIGN SUCCESSION ORDER OR PROBATE 265I. No Direct Recognition 265

II. Indirect Recognition of a Foreign Succession Order or Probate 268III. Critical Appraisal 269

Part III. International Civil Procedure 271

Chapter 1. Jurisdictional Immunities 271

§1. OVERVIEW

§2. IMMUNITY FROM JURISDICTION§3. IMMUNITY FROM EXECUTION§4. DIPLOMATIC IMMUNITY§5. IMMUNITY OF INTERNATIONAL ORGANIZATIONS

Chapter 2. International Jurisdiction 279

§1. INTERNATIONAL JURISDICTION AND NATIONAL JURISDICTION:OVERVIEW

§2. INTERNATIONAL JURISDICTION IN CLAIMS IN PERSONAMI. General Principles

II. Service of the Claim in IsraelA. Presence of the Defendant in Israel at the Time of Service

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B. Service upon IndividualsC. Service upon Foreign Corporations

III. Service of Process outside IsraelA. The General RequirementsB. The Exceptional Situations in which Leave to Serve may

be GrantedC. The Procedure for Obtaining Permission to Serve AbroadD. Challenging Service Abroad

IV. Submission to Israeli Courts JurisdictionA. Submission by Effecting AppearanceB. Submission by Jurisdiction Agreements

§3. JURISDICTION AGREEMENTS, FORUM NON CONVENIENS, LIS ALIBIPENDENS, ANTI-SUIT INJUNCTIONS

I. Jurisdiction AgreementsA. Agreement to Litigate in IsraelB. Agreement to Litigate in a Foreign Country

II. Forum non conveniensIII. Lis alibi pendensIV. Anti-suit Injunctions

§4. INTERNATIONAL JURISDICTION IN ADMIRALTY CLAIMS IN REM

Chapter 3. Procedure in International Litigation

§1. LEX FORI PROCESSUALIS

§2. JUDICIAL ASSISTANCEI. Service of Documents

A. International ConventionsB. Domestic LegislationC. Service to Foreign States or DiplomatsD. Application

II. Access to JusticeA. Free Legal Aid

1. International Conventions2. Domestic Legislation

B. Security for Costs1. International Conventions2. Domestic Legislation

C. Language to be Used1. International Conventions2. Domestic Legislation

III. Recognition and Enforcement of JudgmentsIV. Evidence

A. International ConventionsB. Domestic LegislationC. Application

1. Obtaining Evidence Abroad for Use in IsraeliProceedings

283283283283

285292293294294295

296296296296298303304306

312

312312313313313314314314314314315315315315315315316316316316316317

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2. Obtaining Evidence in Israel for Use in AnotherJurisdiction 318

§3. INTERMEDIARY AND PROTECTIVE MEASURES: MAREVA (FREEZING)ORDERS 320

§4. PROOF OF FOREIGN LAW 323

I. The Rules Applying in Israel at Present 323II. The Qualification of the Foreign Law as a Fact 324

III. The Presumption Regarding the Identity of Laws 325IV. The Burden of Proof 327V. Proposed Reform 327

Chapter 4. Recognition and Enforcement of ForeignJudgments 329

§1. OVERVIEW 329§2. THE LEGAL BASES FOR RECOGNITION AND ENFORCEMENT 329

I. International Agreements 329II. Domestic Law 331

§3. DIRECT RECOGNITION 332I. Direct Recognition under the FJEL 332

II. Direct Recognition under English Common Law Rules 333§4. INCIDENTAL RECOGNITION UNDER THE FJEL 334§5. RECOGNITION OF A FOREIGN JUDGMENT EX LEGE 335§6. ENFORCEMENT OF FOREIGN JUDGMENTS 336

I. Enforcement under the FJEL 336A. Foreign Judgments enforceable under the FJEL 336B. The Conditions for Enforcing a Foreign Judgment 337

1. Cumulative Conditions for Enforcement (§3, FJEL) 337a. Comments ' 337

2. The Reciprocity Requirement (§4, FJEL) 340a. Comment 340

3. Defenses (§6, FJEL) 340a. Comments 341

4. Prescription (§5, FJEL) 343a. Comments " 343

5. Prejudice to State Sovereignty or Security (§7, FJEL) 3446. Enforcement of a Provisional Judgment or Interim Order

(§8, FJEL) 344a. Comment 344

C. The Competent Israeli Court in Enforcement Proceedings 344D. Execution of an Enforceable Foreign Judgment (§10, FJEL) 345

a. Comments 345E. Implementation and Regulations (§13, FJEL) 345

a. Comments 345II. Enforcement under English Common Law Rules 346

a. Comments 346

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Chapter 5. International Arbitration 347

§1. OVERVIEW 347

§2. THE LEGAL SOURCES 347I. International Conventions 347

II. Domestic Law 348§3. THE ARBITRATION AGREEMENT 349§4. ENFORCEMENT OF THE ARBITRATION AGREEMENT 351§5. CONSTITUTION OF THE ARBITRAL TRIBUNAL 352§6. JURISDICTION OF ARBITRAL TRIBUNAL 353§7. THE ARBITRATION PROCEDURE 353§8. THE LAW APPLICABLE TO THE DECISION ON THE MERITS 354§9. THE APPLICATION OF MANDATORY RULES OF LAW 355

§10. INTERMEDIARY AND PROTECTIVE MEASURES 357§11. ENFORCEMENT OF A FOREIGN ARBITRAL AWARD 358

Table of Cases 361

Table of Statutory Instruments 377

Table of International Treaties 383

Index 387

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